JOHANNESBURG (miningweekly.com) – The Iron Valley mine in central Pilbara, which Mineral Resources operates, continues to deliver for owner BC Iron.
The ASX-listed iron-ore company reported on Friday that Mineral Resources had shipped 4.8-million wet metric tonnes of product, which generated earnings before interest, taxes, depreciation and amortisation for BC Iron of A$5.6-million.
The companies had also amended an agreement, which would provide for an adjustment to the price payable by Mineral Resources to BC Iron. The adjustment varied with iron-ore prices, but on average, BC Iron expected to receive a price increase of between A$0.40/dmt and A$.90/dmt.
“Overall, BC Iron expects this will enhance the company’s earnings from Iron Valley effective April 1, 2016, based on current iron-ore price expectations,” the company reported.
The Iron Valley mine is currently producing a mix of direct shipping ore lumps and fines from above water table ore. BC Iron and Mineral Resources were seeking to access ore below the water table and were advancing approvals.
The companies recently secured amended environmental and mining approvals to enable additional ore to be accessed prior to mining future below water table ore.